Things You Need to Know To Attain Financial Freedom

by Krantcents · 21 comments

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Is it possible to attain financial freedom in today’s world? The truth is that it is. However, as with most things in life, attaining financial freedom requires effort and a plan of action. One of the first things to do when getting your finances in order is to look over your bills and make plans for the future.

For example, you might want to see if you can save some money by finding cheapest car insurance. You can then use the money you have saved to meeting your financial goals. It is important to make sure that you have a good life insurance policy. Not having insurance can really put your family at risk financially.

Once you have done that, you can work on finding financial freedom. The secret of attaining financial freedom is to live below your means. Although you may think that this is impossible, realize that people have been doing just that for many, many years. In generations past, people did live this way and never thought about living any differently. They paid cash for what they needed and rarely bought anything on credit. In addition, because of their lifestyle choices, they did not have huge amounts of debt. Of course, it can be a challenge to live this way in today’s world where it is tempting to go out and purchase the newest gadget to impress your friends. Living this way will impede your goal of attaining financial freedom. The next time you are tempted to go out and buy something just because, ask yourself: do I really need the latest technological gadget or do I want to use that money to pay off some bills so I can retire early instead? Your ability to attain financial freedom will largely depend upon the decisions you make in response to such questions.

In order to attain financial freedom, you will also need to start to pay off your debts. Take a look at your bills and make a note of how much you owe to different lenders. Then, make a plan on how you aim to pay off your bills. You might want to start by taking the lowest bill first and paying slightly more than the minimum balance until you have paid that bill off. Then, do the same with another debt. It may take several years, but eventually you will have paid off your debts.

After so, you can begin to put money into a retirement fund. Perhaps you have already begun a retirement fund; if this is so, you can take the money you were using for debt and put it into your retirement fund.

Make sure to check your insurance needs again and see if you can find cheaper insurance policies. You may also want to think about changing your life insurance policy to a whole life policy instead of a term policy as you get older to maximize your benefits and lower your premiums. Given enough time and some effort, it is possible to attain financial freedom. If other people can do it, you certainly can too.

Photo by:  David Hilowitz

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{ 21 comments }

SB @ Onecentatatime September 16, 2011 at 12:01 pm

I may not ever get a financial freedom or seek for it. I love my work and don’t think of quitting. 

krantcents September 16, 2011 at 12:43 pm

Financial freedom has nothing to do with work! It just changes why you work. I love my job too! I work because I love it.

Miss T September 16, 2011 at 3:01 pm

I like my job too but I can’t wait for the day when I can go to work because I choose to. If I don’t want to get up one morning, I won’t have too. 

krantcents September 16, 2011 at 11:34 pm

Financial freedom means choices!

Robin September 19, 2011 at 7:39 am

financial freedom to me means just one thing. Time
The time to do the things you love whenever and where ever you want.
If you really think about it money is simply a means to an end.

Paula Pant September 16, 2011 at 6:10 pm

I love my job too, but I like the idea of CHOOSING to work rather than NEEDING to work. Its possible that absolutely nothing in your day-to-day life changes between pre-financial freedom vs. post-financial freedom. The only thing that changes is the knowledge – and the emotional satisfaction – of knowing that if everything went to “heck in a handbasket,” you’d financially be okay.

krantcents September 16, 2011 at 11:36 pm

I achieved financial freedom a long time ago, but I want more! I no longer work for money in the normal sense, but I still sock as much away as I can.

Bank Aim September 17, 2011 at 4:18 am

How did you get there, if you don’t mind sharing? Do you have a post about it?

krantcents September 17, 2011 at 4:35 am

That was a guest post, however I achieved my financial freedom at 38 years old. I wrote a article describing “My Journey to Success”. You will find it on page 4.

Beatingtheindex September 16, 2011 at 11:45 am

Am I the only one who doesn’t like my job right now? Good thing I like my hobby, maybe one day it can turn into a job…

krantcents September 29, 2011 at 4:36 pm

 Financial freedom can mean no debt for you.  Don’t underestimate the importance of enjoying your career.  I know that more opportunities occur when you are happy and positive.

Maggie@SquarePennies September 16, 2011 at 6:44 am

Good advice!  I think term life insurance makes sense at any age.  Adjusting your lifestyle to live below your means could be a foreign concept to many, but it is the secret to success!

Bank Aim September 16, 2011 at 8:42 pm

Living below your means is one of the keys to financial freedom. Then taking that money and making it work for you. I also love my job and once I obtain financial freedom I’ll still be doing what I love.

krantcents September 16, 2011 at 11:43 pm

Savings has always been a priority! I have a low profile lifestyle which would never let me spend more than I earn.

Buck Inspire September 17, 2011 at 1:17 am

Living below your means and checking all your insurance details.  Good advice and thanks for the reminder about looking into different life insurance options.

Investorz' Blog September 18, 2011 at 7:15 am

I would say that the key to achieving finacial freedom is to work for yourself (be an entrepreneur). Only by doing that can you break the bonds between your financial dependancy on the decisions of others.

krantcents September 18, 2011 at 8:46 pm

It is the most basic of personal finance advice and yet it escapes most people. It reminds me of the advice of pay yourself first. A lot of people miss that too.

krantcents September 18, 2011 at 8:49 pm

Put together a plan to cure the problem. I am in my 7th career and now realize what it is like to love what you do. Don’t wait too long because it is a world of difference.

krantcents September 18, 2011 at 8:53 pm

I view everything as a problem solving exercise. I like to analyze and find creative solutions for problems. For example, I can not give up cable TV, I negotiated with them to lower the price.

krantcents September 18, 2011 at 9:01 pm

Very true, however being your boss creates even more limitations. When I was an entrepreneur, I had to be there for a lot of hours or visit often. I felt very tied to the business.

krantcents September 19, 2011 at 1:23 pm

I totally agree! I am able to do a lot of the things I love, but having my own time would trully be freedom.

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